The Role of Social Capital in Corporations: A Review

http://ift.tt/eA8V8J
Posted by Henri Servaes, London Business School and Ane Tamayo, London School of Economics, on Saturday, June 3, 2017

Editor’s Note: Henri Servaes is the Richard Brealey Professor of Corporate Governance and Professor of Finance at London Business School; Research Associate of the European Corporate Governance Institute; and Research Fellow of the Centre for Economic Policy Research. Ane Tamayo is Professor of Accounting at the London School of Economics and Political Science. This post is based on a recent article by Professor Servaes and Professor Tamayo, forthcoming in the Oxford Review of Economic Policy.

While the importance of Physical Capital, Human Capital, and Intellectual Capital in corporations is well understood, there is another type of capital, perhaps equally important, which has received a lot less attention: Social Capital—broadly defined as the quality of the relationships that a firm, and its executives and employees, have built with other stakeholders. To date, most research on social capital has focused on the social capital of countries (or regions within countries), generally measured by the civic engagement of the population or the willingness of people in a society to trust each other, concluding that regions with more social capital enjoy higher economic growth. In a review article forthcoming in the Oxford Review of Economic Policy, we argue that the notion of social capital can also be applied to corporations.

(more…)

June 03, 2017 at 07:59PM

http://ift.tt/2qMNlqh

from

http://ift.tt/2qMNlqh